Business Newsmakers

Meir Statman's Latest Book Receives Great Press

Wednesday, Jan. 19, 2011

Meir Statman’s latest book has received great press in recent weeks. What Investors Really Want by Statman, the Glenn Klimek Professor of Finance at SCU, offers insight into the field of behavioral finance and explains the motivations behind our investments. Professor Statman puts forth the idea that investors seek more than just wealth maximization.

While financial gain is an important factor in our investing, he says, we also have two other needs. These two motivating factors are our desire to feel good and our want for emotional well-being and status. He explains that our desire to feel good impels us to buy stocks when markets are going up and quickly sell our stocks when the market goes down. Our need for status oftentimes leads people to invest in hedge funds, an exclusive investment option that indicates wealth and prestige.

The concepts that Professor Statman affirms in his book have been referenced in several financial articles. An article on CNNMoney.com quotes Statman in its evaluation of the value of gold as an investment, focusing on his assertion that investors make purchases for expressive as well as economic benefits. Articles from Women’s Wear Daily and NBC New York highlight Professor Statman’s notion of clothing as a status symbol and means of competition in their discussion of the recent growth of men’s wear.